Vjvgoe please this one is confusing. The amounts that I'm getting are not correct and I only have a limited amount of checks.
Problem 5-3 Performance obligations; warranties: option [LBS-2. 5-4. 5-5] Creative Computing sells a tablet compqu called the Protab. The at} sales price of a Frotab Package includes the following: . One Protab computer. . A E-mond'l limited warranty. This wananty guarantees that Creative will coyer any costs that arise due to repairs or replacements amociated with defective products for up to six months. - A coupon to purchase a Creative Proboolr e-boolr reader tor HEEL a price that represents a 411% discount from the regular Proboolt price ct $315. It is expected that ass of the discount coupons 1.vrlll be utilized. - A coupon to purchase a one-year extended warranty for ETD. Customers can buy the extended warranty for ETD at other times as well. Creatiye estimates that teas ct customers will purchase an extended warranty. - Creative does not sell the Protab without the limited warranty. option to purchase a Probcclt. and the option to purchase an extended warranty. but estimates that if It did so. a Protab alone would sell for 5T3}. Customers must pay smc to purchase the extended warranty llthey don't purchase it with the ETC coupon that was Included In the Protab Package. Creative estimates that 4% of customers will use the STD coupon to purchase an extended warranty. Required: 1.&2.lndlcated below whether each item ls a separate performance obligation and allocate the transaction price oi lublit Protab Padrages to the separate performance obligations In the contract. Protab tablet Limited 5-month warranty Cpticn to purchase a Prcboolt Cpticn to purchase extended warranty Total stand alone price F'l'otah tablet Limited 6-month warranty Dpticn to purchase a Prcbool: Dpticn to purchase extended warranty Total contract price \fRequlred: 1.51lndlcated help-w whether each ltern la a separate performance cbllgatlcn and allocate the Iraneactlan prlse at 100.com Prowl: Packages to Ihe separate performance ebllgallans In the centred. . Inner-r II mll but nut entirely Cm Plate]: tablet Limited 6-month warranty Option to purchase a Pmbmk S 3.000.\" a 3.94% Option to purchase extended warranty 9 S .200.\" a 1.51% Total stand alone price -s 75.2mm - matron -- u_ u_ -- 1. Prepare a Journal entry to record sales at IDOUL'I Pmtah Packages (Ignore any sales of extended warranlles}. {If no entry I: requlred for a transactionfevent, select "Ho Journal entry raqulred" In the rst accounteld.) . Annel- II mllbl but not unlit-Ir curl-Int. 1 1 Cash a rename a Sales revenue a 6.992250 3 Deferred revenue -dlsceunt upllon a 291,560 a Deferred revenue - extended warranty 9 116,13!) a Requlred: 1.51lndlcated help-w whether each ltern la a separate performance cbllgatlcn and allocate the Iraneactlan prlse at 100.com Prowl: Packages to Ihe separate performance ebllgallans In the centred. . Inner-r II mll but nut entirely Cm Plate]: tablet Limited 6-month warranty Option to purchase a Pmbmk S 3.000.\" a 3.94% Option to purchase extended warranty 9 S .200.\" a 1.51% Total stand alone price -s 75.2mm - matron -- u_ u_ -- 1. Prepare a Journal entry to record sales at IDOUL'I Pmtah Packages (Ignore any sales of extended warranlles}. {If no entry I: requlred for a transactionfevent, select "Ho Journal entry raqulred" In the rst accounteld.) . Annel- II mllbl but not unlit-Ir curl-Int. 1 1 Cash a rename a Sales revenue a 6.992250 3 Deferred revenue -dlsceunt upllon a 291,560 a Deferred revenue - extended warranty 9 116,13!) a
